Governance

DIMCredits will offer insurance to agents in the DIC token. The governance rules will be as follows,

• Insurer agents will send the amount of DICs they want to use to insure others to the reserve account as a deposit. They previously bought those tokens in an external exchange.

• The reserve account holds all the DICs to cover all insurances. It has all the transaction history.

• Insurers will earn fees collected also in DICs.

• Creditor agents from other communities must buy DICs in an external exchange to pay insurance fees.

• Creditors, debtors, and insurance agents can not have a negative balance.

• The reserve account will hold 25% of fees for maintenance and application improvements. This percentage could drop to nearly 1% if volunteers developed everything.

• The reserve account pays fees proportionally to insurer agents distributed by the amount of DICs those insurer agents sent previously to the reserve account. This implements a poor Proof of Stake (PoS) algorithm in a DMAS.

• The total amount of insurance can not exceed the amount of DICs the reserve account has from insurer agents' transactions. This means 100% of insurance is backed.

• Only the reserve account can create or destroy DICs. Depending on insurance demand, the reserve account will adjust the number of tokens in circulation.

• The total DIC supply will be the total capacity the community has for insurance plus unexpended DICs bought in exchanges or gained in fees collected. DIC will have a dynamic supply backed by the insurance service provided by the DIMCredits community.

• Depending on the creditor's reputation, the fee amount will be a percentage of the total DICs insured.

• The creditor’s reputation will be calculated by an algorithm that will access all of her transaction history and credit balance.

• Creditors and debtors must have a reputation to operate.

• If an insurance agent wants to leave DIMCredits, she has to request it to the reserve account. The reserve account will create new DICs equal to the insurance agent balance and sell them in the market. When other insurance agents send to the reserve account that amount of DICs, the reserve account sends that quantity of DICs to the insurance agent who wants to leave.

Game theory is very important to govern decentralized ecosystems. An incentive mechanism needs to be designed to encourage “correct” behaviors for all agents. Those incentives are:

• Pay lower fees. By improving reputation.

• Be a member of the ecosystem. By avoiding bad behavior.

• Earn fees. By depositing DICs.

• Exchange with trust. By supporting the community and behaving well.